Tax Laws Amendment (Research and Development) Act 2011 (93 of 2011)

Schedule 3   Other amendments relating to new R&D incentive

Part 6   Other amendments

Income Tax Assessment Act 1997

54   Section 4-25

Repeal the section, substitute:

4-25 Special provisions for working out your basic income tax liability

The following provisions may increase your basic income tax liability beyond the liability worked out simply by applying the income tax rates to your taxable income:

(a) Subdivision 355-G;

(b) subsection 392-35(3).

Note 1: Subdivision 355-G increases some entities’ tax liability by requiring them to pay extra income tax on government recoupments relating to R&D activities for which entitlements to tax offsets arise under Division 355.

Note 2: Subsection 392-35(3) increases some primary producers’ tax liability by requiring them to pay extra income tax on their averaging components worked out under Subdivision 392-C.